you haven't had a banned phrase for a while. >> greg: i have a lot. thinking of banning you. the letter "u." >> dana: for christmas maybe you could give everybody list of banned phrases. >> greg: i will. i thinkly do that. is this banter? >> dana: that's it for "the five." thanks for watching. ♪ >> bret: the government creeps closer to the fiscal cliff with orders for the military and others to start preparing for the worst. this is "special report." ♪ ♪ >> bret: good evening. i'm bret baier. the country plays the waiting game to see if country and the president take the economy off the fiscal cliff, president obama says he will not play the debt ceiling game again. but he is taking a few more shots in the public relations

game. turning the screws on republicans, a little bit more. chief white house correspondent ed henry starts us off tonight. >> reporter: finally the blame for stalled budget talks on republicans, president ratcheted up the lesh on john boehner. >> no one wants to have this done more than me. >> reporter: telling agencies to watch for massive spending cuts from going over the fiscal cliff and warped the business exectives the economy could take another hit if the republicans decide to extend the middle class tax cut to avoid the cliff for now. then come back with more leverage. to tie it to a hike in the debt ceiling. >> we are 23409 going play that game next year. if congress in any way suggests that they are going to tie negotiations to debt ceiling votes, take us to

brink of default again, i will not play that game. >> republicans held their own meeting with small business owners denying they're trying to punt. >> i'll be here and available at any moment to sit down with the president to get serious abouting the problem. >> they noted the president has not scheduled any meetings with the g.o.p. leaders in weeks. not offered any counterproposal to boehner's plan from last week. >> a balanced approach the president has been asking for. now we need response from the white house. >> reporter: they continue to insist the impediment to the deal is boehner's tax revenue is not enough. the holdup is boehner took a position the day after the campaign that said we are willing to bring in revenue but not increase rates. >> reporter: two summers ago the president himself claimed he could raise more revenue

without raising rates. >> give us $1.2 million and could be accomplished by eliminating loopholes. eliminating deductions. ebb gauging in tax reform process to lower rates generally and broaden the base. >> white house officials insist it was made in a different context of the republicans that say it sounds an awful lot like what speaker boehner is pushing for right now in these talks. >> bret: ed henry, let's go down on the subject of defense cuts. doug mckelway has some of the specifics. they involve big numbers. >> for the first time since the passage of the budget control act of 2011, the

pentagon today announced off camera briefing it's begun preparing for sequest race, and the harm it would do to national security. >> the white house said the mood should not be read as change in commitment to reach an agreement. >> this is act in response. that were is in stark contrast to the defense contractors in october. midst of the presidential campaign to hold off on issuing a 60-day notice of potential layoffs to workers required by law. >> for to us have gone this long a period of time, without making any preparations for it, i think is a gross disservice to the american people. >> for months the pentagon officials have been speaking descriptively about the impact of the cuts. >> face the prospect of budget sequestration. that would be devastating to national security. >> more detailed look comes from the economiststein fuller at george mason university. he finds that a $45.1 million

reduction of purchase of military equipment at research and development alone would reduce gdp by $86.5 billion and result in loss of 1 1,600,000 00 across all sector of the economy impacting every state and representing decline of personal income. but those numbers represent a small fraction of proposed defense cuts. d.o.d. would absorb $55 billion in cuts every year through 2021. long-held doctrine of maintaining force capable of fighting two wars would be strained. with the obama administration, shift to asia, as a new focus on the u.s. operations. >> it would require us temporarily to throw out the strategy we have so carefully put in place in the past year as something to avoid. >> the d.o.d. promises that the salary of the department 3 million civilian and military employees would be exempt from cuts. staffing them would not be.

bret? >> bret: doug, thank you. one of the suggestions discussed for increasing revenue involves limits on tax deductions as you heard in ed henry's piece. that brings us to the issue of charitable giving and whether the limits on write-offs would limit people's willingness to write checks. here is chief national correspondent jim angle. >> more than 200 representatives of charitable organizations from across the country came to washington today. to urge lawmakers to be careful not to hurt charity in search for revenue. >> for every dollar a donor receives in tax relief the public receives $3 of benefit. no other tax benefit generates that positive public impact. >> as they fanned out across capitol hill to talk to lawmakers the debate rageed on how to avoid the fiscal cliff.

president obama trying to argue the republican plan wouldn't work suggested that the g.o.p. would eliminate charitable deductions altogether. >> if you eliminate charitable deductions, ever hospital and university and non-for profit agency, across the country would find themselves on the verge of collapse. >> destroying every charity in the country as a powerful political argument no republican plan to eliminate the charitable deductions. oddly enough the president himself long favored capping deductions at 28%. also in his current budget. >> a different way to do that, that would raise $600 billion over ten years. >> analysts say that 50 $50,000 cap the g.o.p. suggested would raise more than that. some $750 billion. the arguement that limiting deductions would hurt charities was dismissed by mr. obama himself back in 2009. >> i think this was a good

idea. a realistic way for to us raise revenue from people who benefited enormously in the last several years. >> making the wealthy pay is not the focus of the charitable community. it fear money charity would have received in donations would go instead to the federal government in taxes. >> if they are taxed on their gift to the charities, that is just that much less money that they are able to give to non-profits. >> who will pick up the slack? no one. >> so neither the president's plan nor the one from congress would exempt charitable donations from the deduction cap, which is exactly why the nation's charities are squeamish. bret? >> more on this with the panel. jim, thank you. citigroup says it will eliminate more than 11,000 jobs. the nation's third largest bank says it's looking to cut expenses and improve efficiency. the dow gained 83 today. the s&p 500 was up 2. the nasdaq lost 23. another one of the president's relatives in a deportation case that is later in the

grapevine. up next, is syria's president looking for a way out of his country?

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♪ ♪ >> bret: secretary general of the united nations is the latest world leader to warn syria against using chemical weapons. there are indications tonight syria's embattled president may be working on an exit strategy. correspondent connor powell is watching from jerusalem. >> in the heart of damascus, syrian forces fire rockets on nearby rebel additions. the fighting moving closer to the assad regime headquarters. this comes as secretary of state hillary clinton today reiterated her warnings to syrian president bashar assad against using chemical weapons. once again, saying it would cross a red line. senior syrian official refused to confirm the existence of the weapons but denied the government is considering using them in the fight,

despite intelligence reports to the contrary. >> our concerns are that increasingly desperate assad regime might turn to chemical weapons. or might lose criminal of them to one of the many groups that are now operating within syria. >> groups according to the u.s. intelligence reports that are affiliated with al-qaeda. and are increasingly fighting alongside opposition forces. >> in a sign that president assad is feeling the mounting pressure he has reportedly sent an envoy to several latin american countries including venezuela, cuba and equador, seeking asylum. not on the list is the two biggest military supports, russia and iran. on britain sky news today, assad's envoy deputy foreign minister denied the report. and said the president will not leave syria and assad will stay in power. >> do you think your government will still be in power a year from now?

>> i am sure, yes. >> reporter: nato announced a limited number of u.s. troops and patriot missile will join the german and turkish troops on the border to prevent syria attacking turkey. >> bret: thank you. opponents of egyptian president mohammed morsi reportedly torched the headquarters of the muslim brotherhood in a city east of cairo today. outside the presidential palace in the capital, thousands of islamist supporter of president morsi chased away opposition protesters who later returned in big numbers. fighting with rocks, fire bombs and sticks. tragic scenes tonight in philippines. stunned parents searching through a reof mud-stained bodies looking for missing children lost. the storm killed nearly 300 people in the southern philippines, including 78 villagers who perished during a flash flood. show and tell today on capitol

hill. america's top intelligence official brought visual aids with him for his briefing on the september 11 terror attack in libya. chief intelligence correspondent catherine herridge tells us what lawmakers saw. >> the closed, classified briefing brought together state department and counterintelligence officials for status report on the 23-month-old investigation on benghazi terror attack. >> to the degree there was planning involved was this done over weeks, days or hours? i don't think there is any indication of long-term planning here. >> the attack chronology was laid out in a multimedia presentation that included overhead drone surveillance with the security camera video from the consulate and c.i.a. annex. >> this is supposed to be sovereign u.s. territory. people can just come in and walk in on us like that without any kind of resistanc resistance, making your blood boil. where is the security? >> compilation video was shown

last month but this is the first time the presentation made to the entire house. a lawmaker who asked not to be identified said like in section of video to south florida beach party. the top nation official emphasizeed the attackers' motivation is unknown but it raised questions among republicans about the obama administration singular and immediate focus on anti-islam video. >> why did you hone in on just that part and focus in on that part for so long rather than say look this isn't a black-and-white issue as the general clapper said today? >> one of the motivations may be the video or the response to the video in cairo. that can't be ruled out. fox news confirmed the annex shut down and took indirect fire from two mortars. the alex was cleared of classified material in less

than ten hour, the consulate less than a mile away has not been secured. >> bret: stay on the story. thank you. still ahead, paying your moral fair share of taxes? we'll explain. ready or not, here it comes. the republicans gearing up for 2016. ♪ but the fire is so delightful ♪ nothing melts away the cold like a hot, delicious bowl of chicken noodle soup from campbell's. ♪ let it snow, let it snow

>> bret: never too early to do certain thing, shop for christmas, plan for retirement and apparently run for president. chief political correspondent carl cameron is back with us tonight and looks at a couple of the top republican contenders for the next election cycle. >> as the republicans digest mitt romney 2019 defeat, former running mate paul ryan and surrogate marco rubio the florida u.s. senator are

openly joking about and already testing message for the 2016 g.o.p. race for the presidential nomination. >> see you at the reunion dinner, table for two. do you know any diners in iowa? >> thank you for your invitation in iowa and new hampshire. i will not stand by and watch people of south carolina ignored. >> rubio received the second annual jack kemp foundation award last night. ryan a kemp protege received the first award last year. ryan mentioned fighting poverty 15 times last year and distanced himself from the romney infamous remark of the 47% who don't pay federal income taxes. >> both parties tend to divide americans to our voters and their voters. let's be clear. republicans must steer far clear of that crap. >> rubio emphasizeed expanding the g.o.p. big tent and describing voters will determine the future of the country and the g.o.p. >> it all starts with our people. in the kitchen of our hotel

and landscaping crews that work in the neighborhood, late night janitorial shifts that clean our offices. that is where you find the dreams america was built on. >> ryan urged republicans to set aside party tan consideration to re -- partisan considerations to revive the economy and put people back to work. >> the election didn't go our way and republican party can't make excuses. we can't spend the next four years on the sidelines. instead, we must find new ways to apply our timeless principles to the challenges of the day. >> one of the biggest channels facing republicans politically is the 2019 drubbing they took with latino voters. rubio said this morning that latinos are not monolithic and want the same things that all americans do and put it in campaign context. >> what they are look for are people that understand the issues and anxietys they face and hope they have and offer real and concrete policy solutions and a real role for government. appropriate role for government to play in

addressing the anxietys they face. we are one election away from being able to do that. >> they are a group of a dozen republicans for 2016. a couple have paid advisors specializing in white house races. democratic side, new "washington post"/abc news poll said 57% of americans would support hillary clinton. while 37% said they oppose her. joe biden hinted about running a handful of other democrats governor of new york and maryland are also openly looking at it. no, it's not too early. >> bret: we have time to talk about it. >> lots of time. >> bret: carl, thanks. sad news, the loss of a woman who made a difference half a world away. elizabeth murdoch, mother of our big boss died peacefully today in australia. at the age of 103. mrs. murdoch was the mother of four children, including rupert murdock. patron of the arts she contributed to estimated 100 charities annually. many of them concerned with

the health of children. in 1963, elizabeth murdock was made a dane commander of the order of the british empire. one of britain's highest civilian honors for her services for social welfare. australia bestowed a similar order companion of australia in 1989. prior to her 100th birthday, the australian prime minister called her woman with turbo charge for her community service in her advanced years. on behalf of her extended family, rupert murdock said his mother would be mourned by countless thousands of australians whose lives she touched. we lost the most wonderful mother but we're grate to feel have had love and wisdom for many years he said in a stat statement. throughout the life demonstrated best qualities of public service. the energy and personal commitment made the country a more hopeful place. she will be missed by many.

dame elizabeth murdock survived by 77 direct dekren dents, 50 great grandchildren and six great, great grandchildren. she was 103 years old.

>> bret: now fresh pickingsings from the political grapevine. they voted for president obama, there overwhelmingly. but near bankrupt detroit is

not yet getting a bail-out. councilwoman joanne watson does not like that one bit. >> the election, calling out senator young. to washington, d. he came back home with some bacon. that is what you do. that's what you do. overwhelmingly supporting the re-election of this president and there ought to be quid pro quo and you ought to exercise leadership on that. of course not just that, but why not? >> bret: the detroit free press called this type of thinking, "city government remains stuck in an alternative universe -- alternate universe of denial and daydream." adding "it may be time to pray to a higher power for government sanity." president obama's uncle is getting a new deportation hearing. two decades after being ordered to leave the u.s.

the half-brother of the president's late father is from kenya. the board of immigration appeals sent obama's case to the executive office for immigration review for another look. but will not say why. obama's attorney says the deportation was caused by a technical error. the immigration issues came up after he was arrested last year outside of boston and charged with drunken driving. president obama frequentenly talks about the need for america's rich to pay what he calls their fair share. now, some leaders elsewhere have come up with a new metric. senior foreign affairs correspondent amy kellogg on the moral fair share. >> today we are confirming we will be more resources to ensuring multinational companies pay their proper share of taxes. >> the controller of britain's purse strings slashed the public spending to the quick. now there is mounting pressure for him to find alternative sources of income to go after giants like starbucks, amazon

and google, which have taken advantage of loopholes to allow them to pay minimal tax in britain. >> not paying their fair share, despite being over the u.k. on every high street. it's gisting behavior. i pay my tax, why not starbucks? >> sometimes they position themselveses in other country to avoid paying high taxes here and britain. amazon did $320 million in turnover in the u.k. it paid less than $3 million in british tax. all of this within the law but parliamentary law accused them of immorally minimizing the tax obligation. some say don't blame the big guys. >> i don't moral is the way we ought to levy our taxes.

it should be set out in law and fairly enforced by the tax authority. individuals have their own moral compass that guides what they choose to do. >> starbucks does appear to feel the heat of public pressure. saying we need to do more. we are looking at the tax approach in the u.k. the u.k. said it will tighten its tax regime but it has not said how. other european countrys have similar concerns. with some calling for more uniform taxation across the e.u., so some countries don't become tax havens at the expense of others. bret? >> bret: amy kellogg in london. thank you. the supreme court here in the u.s. is weighing in on what would seem like unusual matte matter.

>> the case involved army sergeant who met and married scottish woman stationed overseas. later living in alabama with their young daughter the marriage fell apart and the wife got in legal trouble and was deported. she convinced a federal court in the u.s. to send her daughter to scotland last year. sergeant was given 20 minutes to tell his daughter goodbye. >> it's my little girl. i said goodbye to her. october 12. told her i'd do everything i could. >> it does not allow a losing parent to file appeal in the court. chief justice john roberts told the mother's attorney it's for parent with control over the child to leave immediately. get on the first plane out and you're home free. thathat is unfortunate result.

>> the child has to have stability. five years old. back in one country. the idea to make her a ping-pong ball isn't fair. >> it could take weeks, and months to get the supreme court decision. for now the girl will stay in scotland. >> will the pentagon fall off the tis call cliff with the rest of the chi? we will talk about it with the fox all-stars as we seem to do every night when we come back. . meet the five-passenger ford c-max hybrid. c-max says ha. c-max says wheeee. which is what you get, don't you see? cause c-max has lots more horsepower than prius v, a hybrid that c-max also bests in mpg. say hi to the all-new 47 combined mpg c-max hybrid.

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that said we are willing to bring in revenue and not willing to bring in rates. we have could solve this in a week. it's not that tough. but we need that conceptual break through. >> we have a debt problem out of control. we have to cut spending. i believe we can put revenue on the table. revenues on the table will come from guess who? the rich. there are ways to limit deductions, close loopholes and have the same people pay more, more of their money to the federal government without raising tax rates which we believe will harm our economy. i'll be here. i'll be available at any moment to sit down with the president to get serious about solving this problem. >> bret: the back and forth today in the fiscal cliff negotiations that aren't really negotiations as they're not sitting in one room. today, the treasury secretary tim geithner said in an interview that there is a

little bit of progress. but yes, the white house would, "absolutely go over the fiscal cliff" if the republicans would not raise tax rates. now republicans are pointing back to july 2011. this statement by president obama. >> yes, said give us $1.# trillion in additional revenues that could be accomplished without hiking tax rates, but could simply be accomplished by eliminating loopholes. eliminating deductions. and engaging in a tax reform process that could lowered rates generally while broadening the base. >> bret: the white house is saying it's out of context but not specifically how out of context. bring in the panel. steve hayes for "weekly standard." kirsten powers for daily beast. syndicated columnist, charles krauthammer. charles? >> look, i love when the president says we need

conceptual break through. meaning the republicans have to accept a hike in rates. what he means is a political surrender. because there is no economic reason why you cannot raise the money he wants raised. by doing it through eliminating deductions, inclusions and credit. number one as we saw he, himself, said so. a year-and-a-half ago. secondly, the same debt reduction commission he appointed and then ignored. spoke about raising much more through eliminating deductions and loopholes. and credits. broadening the base. at the same time, lowering the rates. that is the economic ideal. everybody understands it's what happened in '86 in the tax reform. it's what was recommended in the debt reduction commission. in their three scenarios in one of them, they eliminate so many deductions that they would lower upper rates to 23% and still come out revenue

neutral. so, of course, it can be done. break through the president is talking about is to break the republicans. to create a civil war in the house. by insisting that they go back on the idea of not raising rates, which is economically a correct idea. that encouraging economic growth if you lower rates or at least you keep them the same. this is all about politics, nothing about economics. >> bret: this is a different president obama than in the debt ceiling negotiations. last time around. they are clearly signals that they have the stronger hand. and they are not -- it doesn't even seem like they are getting to a room. >> yeah. >> bret: to negotiate. >> they feel like they have the stronger hand because he won re-election an every pole shows most americans are fine with the tax rates going up on people making more than $250,000. so they feel like they have that on their side. what they also have on their side the president you can't forget did give in on this

issue twice. in the last time he gave in on it he said never again. so that is what is hanging over him. he has his base looking at him saying you gave in on this two times. it's now time to live up to your word. so he is kind of boxed in, in a way politically as well that he has to give this. i agree with charles. you can get the money a different way. i don't think they are going to compromise on that. >> bret: is the base just looking for the scalp of the rates, instead of the money? >> yes. >> bret: they want scalp of the rate? >> absolutely. no question. no question. yeah. i mean, because you can make it up -- i mean the president said it himself. you can make it up another way. it's now gotten the point they want that. by the way, they don't want him to touch entitlement. they don't want any spending cuts whatsoever. so i mean he, that is the position he is in. he is going have to at some point push back on some things. but i think that right now, he is not going give in on the rate, except he might give in

on the percentages. >> bret: at some point for the state of the u.s. economy down the road you deal with the entitlements at some point. fiscal cliff, beyond the fiscal cliff. let me get to this steve. this is about including the debt ceiling. and what the president said about that in this negotiation today. >> we are not going to play that game next year. >> if congress in any way suggests they will tie negotiation to debt ceiling votes and take us to the brink of default once again, part of a budget negotiation, which by the way we have never done in our history until we did it last year. i will not play that game. because we have to break that habit before it starts. >> bret: what about that? >> well, the president had as many red lines for iran as for house republicans. i think what kirsten said is absolutely remarkable.

it is about the scalp. it's about the president having made a campaign argument for the better part of 2012. so that he could run a class warfare campaign. now having to make good on that with the base of his party. the u.s. economy be damned. the republicans offered to give so much and offering precisely what erskine bowles laid out as a compromise position in the proposal they made the other day. you have republicans repeatedly going back to the president and saying here is what we'll do. he says no, here is what we'll do going further. we are in this cycle now where the republicans are at the point they are done doing that. he talked to republicans. spent the better part of the day talking about the way out of this. increasingly you are hearing from republicans on the house and senate side we are done looking for compromise on this. we want a way out.

looking for an exit plan. >> bret: meantime, the pentagon is now saying that they are preparing for sequestration, as the other agencies. getting ready for what happens. how much can the government hold off the bad things that happen on the first of the year? >> hold off some of it for a few months but this is a catastrophe. the president says rattling the cage, that will alert contractors, and that is to his advantage. it's opposite. he is the president. the commander-in-chief. his secretary of defense said it would be hollowing out military and catastrophic. he implied he would resign if it went in effect. he couldn't administer cuts like this. you a president who is in charge. and who will blame it on the republicans. fact, it's his military. his administration.

what did the secretary of defense going to do? republicans have to rethink the idea this is obama's idea if we get the huge cut in defense that are unsupportable. >> they are bluffing that they don't care about going over the fiscal cliff. a bluff. it will send economy in a tail spin. >> i don't think so. the president is fine going over the cliff. if you look what he gets and the ability to play hero if the country went over the cliff, the president can remedy two problems that democrats faced for years. he becomes a huge tax cutter. he can restore the defense cut. i think the point that you are making are logical and correct, that is not how it plays out. perception is as much as

anything else. you looking at a media eager to blame republicans on this. >> that's why i'm correcting them. >> you are correcting them. >> bret: we have an online show to talk more about this. >> i'm correct them even more. >> bret: you can correct them more in a much more relaxed atmosphere. tune in. next up, look at the front runners for yes, 2016. [ fishing rod casting line, marching band playing ] [ male announcer ] where do you hear that beat?] campbell's healthy request soup lets you hear it... in your heart. [ basketball bouncing ] heart healthy. great taste. mmm... [ male announcer ] sounds good. it's amazing what soup can do.

you play know that marco joins elite group of past recipients for is this award. two of us so far. i'll see you at the reunion dinner table for two. know any good diners in new hampshire or iowa?

>> thank you for your invitation for lunch. it will not watch the people of south carolina ignored. >> i heard it suggested that the problem is that the american people have changed. i am convinceed most people want what my parents had. a chance. real chance to earn a living and provide better opportunities for the children. >> when an economic policy after another failed our working families, it's no answer to simply express the compassion for them. >> bret: that was last night at the jack kemp foundation award winner. marco rubio accepting the second annual award.

you heard what they talked about. back with the panel. they look 2016 front runners, wouldn't you say, steve? >> yeah, i would say that is true. if you are a small government conservative in the wilderness for a year when all of these conservatives opted not to run for president, conservatives that movement conservatives who did run the republican nomination, didn't do well. you lost on november 6 a month ago today. you had to deal with the bad republican hand on the fiscal cliff now for better part of a month. this is something to look forward to. that you have two republicans leading the party of this stature and capability. who are movement conservatives in the sense they're both intellectuals. to get these issues viscerally this is something to put you in a good mood. >> bret: rubio talked about the middle class. ryan talked about lifting

people out of poverty. different messages than we heard on the campaign trail this past year. >> rub row also seemed to be sort of disagreeing with mitt romney's argument a little bit. the 47% people who just want hand-outs. kind of a thing. which he disagreed with before. it's interesting because i think it's reprehensible message. i also, i wonder where jeb bush fits in to this also. i can't speak to that since i'm not a conservative but i think he would be one of leading contenders along with these two gentlemen. >> charles? >> i share steve's optimism. we are looking at the future of the party. generational change. the goldwater republicans and the rockefeller republicans and if you look at the generation all of whom could have run in 2012 but were little early. now they will come in their

own. rubio and ryan. governor jindal and scott wal walker. walker. christie out of guarn teen and jeb and the up and coming senators like kelly ayotte. ted cruz from texas. >> bret: susana martinez. >> exactly. a loa lot -- long and inspiring list of the few leaders with ide log call energy and intellectual depth. economassuming our economy is sl around is going to mark an open seat. since 5953. with -- 1953, one party held the white house for two term, they have been kicked out. the one exception is reagan reagan-bush. calendar of history is you get two terms.

the other guy will come in. this is a prize and it will bring out, i think, the best young leaders. >> bret: right now, people are tired of the election. but about the messaging and from the speeches did you hear a framing of a new conservative message? >> yes. in a sense the return to old conservative message. but i expect to hear reform conservative a bit in the coming years. what sets apart the people that charles mentioned, particularly these two fellows is the fact that they came to washington -- they ran for office to do something and get stuff done. the republican party have people to run for office to hold the office. tracking of governor or senator. that's not what these guys are about.

>> bret: we have many more panels about this. maybe we'll touch online as well. stay tuned to see what gangum style has to do with the national debt. [ male announcer ] this is amy. amy likes to invest in the market. she also likes to ride her bike. she knows the potential for making or losing money can pop up anytime. that's why she trades with the leader in mobile trading. so she's always ready to take action, no matter how wily... or weird...

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